Health insurance, windfarm costs trigger meeting

Phyllis Booth Reporter

Thursday

Jun 28, 2007 at 12:01 AM

Selectmen and Town Administrator Dennis Rindone met with Princeton Municipal Light Department Commissioners and Manager Jonathan Fitch on June 13 to get answers to several questions on health care and windfarm costs.

"There's a disparity we have with wage and salary schedules, that's one issue," said Select Board Chairman Joseph O'Brien. He also raised questions about health insurance and the portion of the premium that PMLD pays versus what the town pays for its employees. "We're hoping we can come to come parity at some point," said O'Brien.

Light Commissioner Scott Bigelow said PMLD has to determine wage and salary rates based on being competitive with other municipal light departments "or we won't get employees."

"We'd never compare ourselves to a department of public works," said Fitch. "We focus on the other 40 [municipal light departments]."

Rindone said the main issue is health insurance. PMLD has a separate personnel policy from the town that provides 90 percent of the premium cost for health insurance for its employees. The town pays 85 percent of the premiums.

Town counsel Brackett & Lucas contends PMLD isn't allowed to pay a different percentage of insurance premiums than the town does. PMLD employees signed up for a higher deductible thus lowering the premium cost, bringing it under the 85-15 split. Under that plan, PMLD agreed to cover the deductible.

The light department's attorney contends that under state law PMLD's manager, under the direction of the commissioners, has full charge of the management of the department and its employees.

"We have to balance health care with at or below average wages," said Fitch. "So we keep our health insurance at a slightly higher average."

"I'd rather see you pay your employees more," said Sentkowski.

Light Commission Chairman Brad Hubbard noted the department has six employees. "The market is so competitive and most places are union. We aren't. We're fortunate we're able to get and keep good employees," he said.

Rindone said the question is whether PMLD employees are considered town employees, and thus offered the same health package.

"We are a separate governmental unit and have a completely separate policy," Fitch insisted.

"I have to wonder if it's wise to have different benefits," said Rindone. "I listen to my employees. Shouldn't there be a personnel policy that covers all employees?"

Rindone said the matter has to be finalized by June 30. Fitch said the issue has been on the table since 1999, but Rindone said he doesn't recall discussing it with PMLD.

"Let the attorneys talk and see what's fair and reasonable to employees and taxpayers," said Selectman Raymond Dennehy.

Wind farm costs

Selectmen also wanted to know how PMLD plans to finance the wind farm project and whether borrowing would need a town meeting vote.

"We've structured a way to finance our project and won't be using the town process to do it," said Fitch.

PMLD is forming a cooperative with Massachusetts Municipal Wholesale Electric Company to develop the wind farm, he said.

MMWEC is a non-profit, public corporation and political subdivision of the Commonwealth of Massachusetts with the power to issue tax-exempt revenue bonds to finance electric generating facilities and other projects, Fitch said.

"We've been involved in the project for seven years and feel that with our attorneys and others, that all the I's have been dotted and the T's crossed," said Hubbard. "We've done due diligence."

Fitch said PMLD will start the wind farm project at the end of the month and work should be complete by the end of 2008.

"We're working on the final contract with Lumus Construction and will order the turbines," he said. The Department of Conservation and Recreation has given the department permission to start work, he added. Fitch anticipated that all the site preparation work would be completed by October 1. Next August the intensive work will begin to put up the turbines, which is expected to take three to four weeks.

O'Brien wanted to know how long the town would be paying legal bills in the $200-$300 per-hour range for the Department of Telecommunications and Energy hearing. A decision is awaited on whether PMLD is exempt from zoning regarding the installation of the wind farm.

"They need to give us a decision one way or another," said Fitch. "There's a new manager in Boston and a new DTE board for siting and hearings."

Sentkowski offered to speak with Lt. Governor Timothy Murray to see if the decision process could be moved forward.

Rindone apologized for a misunderstanding with the town accountant related to the legal bills. "We broke out the legal fees into the town's and PMLD portion but the treasurer never billed you for the last three years," said Rindone. "When we were audited it was discovered."

Some of the bills are directly related to PMLD, said Fitch, but some are related to the planning board and the zoning board.

"At a meeting a long time ago, [PMLD commissioners] agreed to pay planning board legal fees and [the town] agreed to pay ZBA fees, said Rindone.

"I don't think every one of these bills is ours," said Fitch.

"We're not going to shirk our responsibility but we're not going to pay your legal bills," said Bigelow. "The legal bills are the lesser of the costs. The delays are the real cost."

"You have to remember, we had no control over people suing us," said Hubbard.

At Monday's select board meeting, Rindone told selectmen that PMLD will be paying the bills.

Rindone said he'd met with Fitch and showed him the minutes from a former selectmen's meeting that the commissioners had attended to discuss legal fees. "We had a good discussion. Jon agreed PMLD would pay the legal bills. We'll sit down and work out an arrangement," he said.

O'Brien said he'd met with Fitch to discuss borrowing for the wind farm upgrade and whether town meeting approval would be necessary. After a review by town counsel, O'Brien said he'd learned that new legislation allows the formation of a cooperative for borrowing. PMLD is forming a cooperative with Massachusetts Municipal Wholesale Electric, said O'Brien.

"The comfort I get is the ownership of the wind farm equipment will ultimately come to the town," he said. "This is new ground for a financial arrangement. They will run it by the attorney general for propriety. As long as that happens, I feel we've done our due diligence."

Wireless update

Fitch reported the new PMLD wireless Internet system has approximately 300 customers.

"We've purchased additional radios and upgraded antennas in congested areas such as Wheeler/Ralph roads and Beaman and Hobbs roads," he said.